Coinbase stock remains in a deep bear market after plunging by 45% from its highest point last year. This crash may continue despite the recent upgrade by Bank of America and Goldman Sachs analysts as activity in the Base L2 network plummets.
Base L2 Activity Has Plummeted
Third-party data shows that activity on Base, the layer-2 network the company launched in 2023, has continued to plummet in the past few months.
Data compiled by DeFi Llama shows that the monthly DEX volume has continued to fall in the past few months, a sign of weak activity. The network processed transactions worth over $26 billion in December, down sharply from the $53 billion it handled in October.
The volume has dropped in the last three consecutive months as the crypto market crash continued. However, some networks like Polygon and Solana experienced robust activity during the month.
Meanwhile, Nansen data shows that the number of transactions in Base plunged by 24% in the last 30 days to 312 million, while the fees and active addresses dropped by 47% and 21%, respectively. They dropped to $2.7 million and $6.9 million, respectively. On the other hand, Polygon’s addresses rose by 20% to 14.9 million, while its active fees rose by 161% to $2.1 million.
The deteriorating activity on Base may have an impact on Coinbase over time. For example, it means that the upcoming $BASE token will not perform well if the community members feel that the network is not doing well.
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Coinbase stock may also remain under pressure towards its upcoming financial results, which are scheduled on February 25, this year. These results will likely show a big deterioration in its revenue and its profits because of the crypto crash. The average estimate is that its revenue dropped by 15% in the last quarter, while its earnings per share tumbled to $1.18 from the previous $4.68.
Coinbase is betting on several strategies to grow its revenue over time. It has entered the booming predictions business and is betting on tokenized stocks. In an interview, Brian Armstrong, the CEO, noted that these assets will boost fractional share trading, global access, perpetual futures, and real-time settlement.
Coinbase Stock Price Technical Analysis
The daily timeframe chart shows that the COIN stock price has been in a strong downward trend in the past few months. It has crashed from a high of $445 in 2025 to the current $240.
The stock has formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. It also remains below the Supertrend indicator.
Therefore, the stock will likely continue falling as sellers target the next key support level at $200. However, the risk to the bearish outlook is that if has formed a falling wedge pattern, which could lead to more upside.
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